Target Hospitality said Tuesday it secured a new multi-year lease and services contract expected to generate about $250 million of revenue through August 2030, as it expands its work supporting a top-five hyperscaler’s data center project in the Pecos region of West Texas.
The company said the community will support about 1,100 people and is slated for initial occupancy in the third quarter of 2026. Target plans to complete the project by modifying existing under-utilized assets, with less than $15 million of capital investment required.
The new deal lifts Target’s total multi-year contract awards across its workforce hospitality segment to more than $1.7 billion since January 2026.
Alongside the contract announcement, Target raised its 2026 outlook. Midpoint revenue guidance increased 6% to $440 million from $415 million, while midpoint adjusted EBITDA guidance rose 22% to $110 million from $90 million. Midpoint capital spending guidance was set at $500 million, excluding acquisitions.
The company also said it expects annualized revenue to exceed $750 million and annualized adjusted EBITDA to top $300 million exiting 2027, based entirely on its existing contract portfolio. As a result of these announcements, the company's shares have moved 0.86% on the market, and are now trading at a price of $17.54. For the full picture, make sure to review Target Hospitality's 8-K report.
